Increasing the Wage

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Just a table on what the effect of increasing a wage would be. It is assuming that it takes one hour to make one loaf of bread.

Row 1 is before, row 2 is if bread price does not increase, row 3 is if bread price increases such as the profit increases at the same dollar rate as labor, and row 4 is if bread price increases as the profit increases at the same percentage rate as labor. Labor / bread is how many loaves a laborer can afford per one hour’s work, profit / bread is how many loaves the owner can afford per loaf sold. Unaffected / bread is how many loafs someone whose income did not increase can afford.

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